Harman buys equipment manufacturer for $365 million

Staff and wire reports

Updated 7:55 pm, Wednesday, May 21, 2014

Harman International Industries said Wednesday that it agreed to acquire audio and visual equipment maker AMX, of Texas, for $365 million.

Stamford-based Harman said the deal with The Duchossois Group will expand its reach beyond the car, where Harman focuses many of its products.

"Harman is the leader in smart connectivity. Our vision is to extend our reach beyond the car into the enterprise, where we already have a substantial audio presence," Dinesh Paliwal, chairman, president and CEO of Harman, said in a statement. "AMX is the global technology leader in enterprise control and automation as well as audio and video switching and distribution. With the addition of AMX, Harman will be uniquely positioned to provide complete audio, video, lighting and automation solutions to our customers globally."

AMX, founded in 1982, makes hardware and software to help with the audio and visual elements used in conference rooms, hotels, classrooms and more. The company is based in Richardson, Texas, and employs more than 600 people in its 19 locations worldwide.

With the acquisition, AMX will become part of Harman's professional division, handling audio and lighting. The division designs products for recording and broadcast, musicians, cinema, touring sound, commercial applications like airports, stadiums, hotels and concert halls.

"Harman is a world-class company, and this transaction will provide additional opportunities to grow the AMX business," Robert Fealy, president and chief operating officer, the Duchossois Group, and chairman of AMX, said in the statement. "The sale to Harman fulfills one of our fundamental objectives, which was to position this business with a leading entity that will take AMX to an even higher level of performance and success."

The transaction is subject to customary closing conditions, including applicable regulatory approvals.

Shares of Harmon, which owns brands such as JBL, Lexicon and Studer, rose $2.35, or 2.3 percent, to $105.84 in trading Wednesday.